The Brea City Council is set to decide Tuesday, Aug. 11, whether to agree to the terms of a cease-and-desist letter alleging Brown Act violations in its negotiations with a local developer to woo a Costco Wholesale into town.
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Attorneys representing Brea4All, a coalition of Brea residents, recently sent city officials the letter, citing friendly texts between a city staffer and local developer Dwight Manley and alleging city officials violated the Brown Act, a state law requiring board and council meetings be open to the public, except in a few narrow circumstances, by privately reaching a consensus on an economic development agreement before publicly approving it.
“The city attorney and staff emphatically disagree that there have been Brown Act violations in connection with the public hearing notice, agenda description, or approval of the (economic development agreement),” a staff report to councilmembers says. “Nevertheless, to avoid unnecessary litigation, it is recommended that the City Council approve an unconditional commitment response in accordance with the Brown Act.”
The City Council in December approved an agreement with Manley that would split a Costco’s projected sales tax revenue over 50 years between Manley and the city of Brea if he successfully landed the big box chain and one of its gas stations for the 34-acre property at 200-250 S. Kraemer Blvd. that he would be purchasing. The property is the Beckman Coulter headquarters.
The agreement frontloads the first decades of revenue toward Manley. The agreement would give Manley 100% of sales taxes collected for the first two years, with his percentage decreasing by 5% every two years until it hits 40% for Manley and 60% for the city in 2041.
Over the agreement’s lifespan, Manley’s company is expected to get 57.5%, or nearly $77 million; the city, 42.5%, or just over $50 million. Manley has also committed 5% of his share, about $6.7 million, toward city senior programs.
The coalition of Brea residents has opposed the deal since its early days, saying the city agreed to unfavorable terms for its taxpayers.
The group alleges in the cease-and-desist letter that councilmembers “deliberated on, or reached concurrence, regarding the (economic development agreement) and related matters outside of any publicly noticed meeting” and the city posted “improperly vague agenda descriptions” about matters related to a deal.
The group demands the city “cease and desist from any further violations of this kind.”
City officials have defended the deal and its negotiations, saying texts between city staff and Manley were appropriate and that Brea has long coveted a Costco, which would be an economic driver for the city amid a mounting budget deficit.
If the Brea councilmembers agree to the Brown Act commitment on Tuesday, it would not change the agreement already in place.
The letter gave the council 30 days from July 15 to respond with an unconditional commitment, or said the city risks legal action from the resident coalition.
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